The Effect of Taxes on the Performance of the Stock Market-Arab Stock Markets as A Model

The research aims to provide a comprehensive and in-depth picture of the theoretical frameworks and empirical studies that framed and explained the mechanism of transmission of direct and indirect influence through which taxes can play an important and prominent role in interpreting the performance of the stock market, as well as building a quantitative model capable of clarifying the size and direction of the impact of taxes. And some other controlling variables (inflation, interest rate, economic growth, money supply, government spending, public debt) as illustrative variables, in the performance indicators of the stock market, which was expressed by the market index, and the turnover rate as response variables, for a sample of Arab countries (Egypt, Jordan, Morocco, Oman, Tunisia, Lebanon, Bahrain) for the period (1997-2019), To achieve this, we relied on the aggregate regression methodology (PRM), the fixed-effect model (FEM), and the random effect model (REM), which are based on the balanced double data (Balanced Panel Data), to obtain results closer to reality and reach an analysis It can be used in investment decisions, and the results revealed the contribution of taxes to the positive impact on the performance indicators of the stock market for the sample countries.